New Penn Financial is pleased to announce the enhancements and clarification to the Fannie Mae HomeReady product.
Highlights of the changes include:
- Limited Cash-Out refinance to 97% for a 1-Unit
- Re-use of an appraisal for a refinance now permitted
- Credit Enhancement now eligible
- Arch Mortgage eligible for insuring
- Aligned multiple mortgages to same borrower and maximum # financed properties to align with Fannie Mae
A brief summary of all changes are outlined below. Reference to the New Penn Financial HomeReady Product Profile located in the Loan Programs page should be made for all specific details.
- Updated Fixed Rate LCOR to permit LTV of 97% for a 1-unit property.
- Current loan being refinanced must be owned by Fannie Mae for 97% LTV.
- Maximum 95% if current loan being refinanced is not owned by Fannie Mae.
3.8 Maximum # Financed Properties
Removed existing requirements and aligned with Fannie requirements
3.9 Multiple Mortgages to the Same Borrower
Removed existing requirements and aligned with Fannie/Freddie requirements
Updated requirements for re-use of an appraisal
Updated documentation requirements for wage earners and borrowers with employment offer letters
Removed reference to credit enhancement as ineligible
8.7 Mortgage Insurance
Updated to permit Arch as an eligible mortgage insurance provider